Eberhart and team need cash badly. They are operating in a cash poor environment without being able to successfully fill large financial orders, grow headcount, or support a higher level of inventory. But in my opinion, we simply don't know enough information about these investors or the deal to make a strong recommendation either way for whether he should sell his company.
The only thing we know about these investors based on the case is that they are not in the public records. The executive team is concerned that the investors aren't really who they say they are and that they may not have the money they claim to have. This is a red flag if I've ever heard one. Investors are only approaching them during a time when they know the company is having problems, which is a concern. Also, the case states that there has been some competitive tampering, when a competitor paid (potentially) sokaiya to pull pranks on San Sonoma. Given the team's experience entering Japan, I'd say absolutely do not sell to these people and perform TONS of due diligence first. That's the only way to set up Khoo for success and ensure that when Eberhart does return home to spend more time with his family, he can rest assured that his company is in good hands.
Separately, having just spent a month in Japan, visiting 10+ cities (and many many bars and retail establishments), I very rarely found any California wine at any establishment except the most high end. In fact, the only wine I found consistently across the country was Chilean cabs!
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